A rigid business budget is a trap. 🪤

In the early stages of a business, revenue fluctuates. If your budget doesn’t fluctuate with it, you’re going to find yourself in a cash crunch.

The secret to a resilient business is building a Dynamic Budget based on two distinct categories:

1️⃣ Fixed Costs (The Floor): Your baseline overhead. Software subscriptions, insurance, basic legal/accounting fees, rent. These are the expenses you owe even if you make zero sales this month. Keep this floor as low as humanly possible.

2️⃣ Variable Costs (The Levers): Your growth expenses. Digital ads, production materials, project-based contractors. These should scale directly with your revenue.

When macro economic conditions change or a major client churns, rookie founders panic. Smart founders just pull the levers on their variable costs to preserve cash.

Your challenge today: Audit your business expenses. What percentage of your monthly spend is locked into fixed costs, and how much is leverage you can adjust on the fly?

#BusinessStrategy #CashFlow #StartupAdvice #CEO #FinancialPlanning